Revenue Account Opens Deadline to Join Simples Special Premium Plan – Economy

After a three-month wait, micro and small businesses and MEIs (individual micro-entrepreneurs) will be able to join the special installment plan created to renegotiate debt with the government. On Friday (29) the Federal Revenue Service published the standard instructions that create the Relp (Simples Nacional Debt Repayment Rescheduling Program).

With Relp, micro and small businesses and MEIs affected by the Covid-19 pandemic can renegotiate debt in up to 15 years. The installment plan offers a discount of up to 90% on penalties and interest on late payments and up to 100% on legal fees. There will also be a down payment deduction proportional to the revenue loss from March to December 2020 compared to the same period in 2019. Those most affected will pay less.

Federal revenue estimates that about 400,000 companies will join the program, in installments of about R$8 billion. However, the renegotiation could cost the government up to R$50 billion, if all debts, recent or current installments, entered the program.

To avoid losing revenue, the government, on Thursday evening (28), amended a temporary measure to increase CSLL (social contribution on net income) for financial institutions. The bank rate increased from 20% to 21% as of December 31. For other institutions, the tax has increased from 15% to 16%, until the end of December.

The increase in taxes on banks ended the deadlock that had been preventing the economic team from liberalizing the trading system and publishing standard instructions for months. Due to the delay, Simples Nacional’s management committee has extended the deadline to join Relp until May 31.

How to join

To join the program, a company representative must access the e-CAC (Virtual Service Center of the Federal Revenue Service) and click on Payments & Premiums. Next, the taxpayer will click “Install SN Debts by LC 193/2022 (Relp)” or “Install MEI Debts by LC 193/2022 (Relp)”, as the case may be. Membership can also be done through the Simples Nacional portal. Membership ends May 31.

During the process, the micro, small, or MEI organization must indicate which debts will be included in the program. If you choose to include the debt in installments or in an administrative discussion, you will need to withdraw from the installment or process, without paying attorneys’ fees for the loss of the lawsuit. The approval of the membership application is not completed until after the first installment of the registration has been paid.

For taxpayers who join today, the first installment will be due on the same day, as it is the last business day of April. Anyone who does not pay the entry fee in full by the eighth month after joining Relp will be disqualified from the program.

Circumstances

Both companies that are registered with Simples Nacional (a special scheme for micro and small businesses) and companies that have been disqualified or excluded from the system because they are in default can join Relp. The renegotiation will cover debts outstanding through February 2022, a month before Congress overturns its veto of the Special Renegotiation Program.

Payment can be made in installments of up to 180 installments (15 years), with a reduction of up to 90% in penalties and interest. The value of entry and deduction will depend on the degree of revenue loss for the epidemic-affected company. Federal revenue will compare bills from March to December 2020 with the same period in 2019. Those with larger losses will pay less input and have larger deductions.

Businesses that closed during the pandemic can also participate. Expired or ongoing installments may also be included in the renegotiation.

coverage

Any Simples Nacional debt due through February of this year can be paid off in instalments. Debt with Social Security can be paid off in up to 60 months (five years). Debt owed on other special annuity programs can also be renegotiated, from 2016 to 2018. The only type of debt for which there will be no deduction will be for the 36-month installments stipulated in the Judicial Recovery Plan.

A taxpayer will be disqualified from refinancing if he does not pay three or six consecutive installments, if he does not pay the last installment, if asset fraud is found to be non-compliance with the premium or if he does not pay taxes or contributions to FGTS that will expire after Relp membership .

Penalties for non-compliance with a secondary obligation, such as fines for late filing, some types of Social Security contribution, other debts not covered by Simples Nacional and debts of Relp companies, are not included.